An investor reported Monday Singapore securities house DBS Vickers Securities to the Capital Market and Financial Supervision Agency (Bapepam-LK) for alleged illegal sale of shares.

Dedy Darmawan Jamin, 48, accused DBS of selling his shares without prior consent, resulting in losses of more than Rp 50 billion (US$4.5 million) during the October stock market collapse.

Dedy said the selling of the shares was related to a margin call. A margin call is an act in where brokers force the investor to either sell the stock or add more cash to their account.

Dedy sought clarification from the broker, which replied the selling was ordered by DBS head office in Singapore, and carried out following standard operating procedures.

DBS Indonesia lawyer Indra Savitri told The Jakarta Post the selling was part of forced selling carried out by DBS as the collateral put up by the investor was not sufficient to cover losses from a decline in share values.

"It's all been done according to the existing regulation," Indra said, adding DBS hoped the dispute could be settled amicably considering Dedy a loyal customers of DBS.

Bapepam head of investigation bureau Sarjito said the agency had yet to receive the report.

He said the agency was also investigating another DBS case involving a trader in Surabaya, East Java. "The modus operandi is similar (with those of Dedy). The trader has misused client account for their own benefit," he said.